Leslie M. Shaw returns Governor Crane's letter and offers his observations. Free hides, suggested by Crane, would not increase revenue. Shaw says reducing the duty on iron and steel would not increase revenue and may go against the Republican party.

Secretary Shaw explains why President Roosevelt cannot decide where the Hall of Records should be built. The location for the building is part of the legislative bill and the bill must be vetoed to change the location. The building can be built where Congress directed or not built.